Innovation Diffusion under Geopolitical Uncertainty: Toward a Theory of Strategic Industrial Competitiveness

Authors

  • Eri Novari Sunan Gunung Djati State Islamic University Bandung image/svg+xml Author
  • Dewi Kurniasari Sunan Gunung Djati State Islamic University Bandung image/svg+xml Author

DOI:

https://doi.org/10.66203/

Keywords:

geopolitical uncertainty, innovation diffusion capability, strategic industrial competitiveness, dynamic capabilities, industrial resilience, innovation ecosystems

Abstract

Growing geopolitical fragmentation has fundamentally reshaped the global innovation landscape by disrupting cross-border knowledge flows, technological collaboration, and industrial ecosystems. While existing studies have documented the effects of geopolitical uncertainty on corporate innovation and strategic decision-making, current theoretical perspectives remain fragmented in explaining how innovation diffusion can be strategically reconfigured to sustain industrial competitiveness under persistent geopolitical disruption. This conceptual paper addresses this theoretical gap by developing a middle-range framework that integrates innovation diffusion theory, dynamic capabilities, absorptive capacity, innovation ecosystems, and geopolitical risk into a unified explanatory model. Through critical theory synthesis and conceptual integration, the paper proposes the Theory of Strategic Industrial Competitiveness, which conceptualizes innovation diffusion as a strategic organizational capability rather than a passive dissemination process. The proposed framework explains how geopolitical uncertainty stimulates strategic adaptation, strengthens innovation diffusion capability, enhances industrial resilience, and ultimately generates sustainable industrial competitiveness. By repositioning innovation diffusion as a mechanism of strategic capability development, this study extends existing innovation and strategic management theories while providing a theoretical foundation for future empirical research on industrial transformation, technological resilience, and innovation governance in an increasingly fragmented global economy.

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Published

06-07-2026

Issue

Vol. 1 No. 2 (2026): Adaptive Economic Transformation

Section

Conceptual Papers

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Copyright (c) 2026 Eri Novari, Dewi Kurniasari (Author)

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